Bitcoin (BTC) Whales Move Coins to Binance, Hinting That the Recent Price Drop Could Continue

Recent on-chain data reveals a significant uptick in Bitcoin inflows to the Binance exchange over the past 24 hours, hinting that Bitcoin's

Recent on-chain data shows a massive uptick in Bitcoin inflows to the Binance exchange over the past 24 hours, suggesting that Bitcoin’s recent price drop may continue.

CryptoQuant materials scientist Maartunn highlighted a crucial trend in Binance Bitcoin netflow on Friday. The metric, which showcases the difference between Bitcoin inflows and outflows on an exchange, has recently turned positive for Binance.

“Netflow on Binance (inflow minus outflow) is heavily positive in the most recent hours,” Maartunn noted, adding:

“Hmm 🧐 https://t.co/NAJVZ8bfuO pic.twitter.com/jhXQj5HHNr”

A positive netflow indicates that more Bitcoin is entering the exchange than leaving. Typically, high net inflows can be bearish for Bitcoin, as they often signal that investors are preparing to sell. Conversely, negative netflow would suggest withdrawals, which are generally considered bullish as it implies that investors are holding onto their coins.

The materials scientist’s observations come as Bitcoin saw a significant drop in its price on Thursday, falling below the $23,000 level after failing to hold above it for the past week. However, the world’s leading cryptocurrency has seen some recovery in recent hours.

The data shows that despite the recent drop in Bitcoin’s price, Binance has experienced consistent positive net inflows. This trend has persisted even as the price decline seemed to stabilize, with inflow spikes suggesting continued deposits by large holders, potentially signaling a forthcoming sell-off.

Bitcoin saw some recovery in recent hours from these large inflows, indicating that the whales may not have yet started selling. It remains uncertain whether these deposits will result in further price declines or if they serve a different purpose.